Readiness of financial resilience in start-ups

Financial resilience refers to a start-up's capacity to anticipate, plan for, respond to, and adapt to gradual change and abrupt unforeseen shocks to survive and thrive by enacting appropriate economic policies to decrease budget deficits. Economic history tells us that more companies fail to emerge from a downturn than go into or during it. Many studies have been done on financial resilience in many dimensions, but no one has studied start-ups’ organizational readiness for financial resilience. This gap inspires the current research, which uses the Total Interpretive Structural Modelling (TISM) approach to identify financial resilience factors and analyze hierarchical interrelationships start-ups’ organizational readiness factors for financial resilience. This article aims to identify, assess, and categorize start-up organizational preparation elements for financial resilience. The result shows that the first importance should be given to digital financial innovation, liquidity planning, going concern consideration, financial strategy of CFOs, and cyberthreats. Managers of start-ups can utilize the findings of this study to prepare for financial resilience professionally. In a fast-paced environment, start-ups may use financial resilience to gain a competitive edge.